16 www.resourceworld.com
D E C E M B E R / J A N U A R Y 2 0 1 9
GOLD
Unlike most other commodities, the price of
gold is driven not so much by supply and
demand but by a number of other factors
such as the value of the US dollar, inflation
rates, changes in nominal yields, and inves-
tor sentiment towards the precious metal.
Although many analysts expect the gold
price to flatline through 2019, assuming
an absence of sudden unexpected events
that shock global financial markets, Bank
of America Merrill Lynch believe the price
could surge next year as concerns deepen
about the widening US budget deficit and
a tariff-driven trade war starts to damage
the country's economy.
SILVER
Silver had a disappointing year yet again
falling from US $17/oz a year ago to just
above US $14/oz recently. Many market
watchers believe that silver will now begin
a rebound, making a slow climb as it enters
into 2019, based on higher demands in the
automotive and solar technologies sectors.
Metals and commodities used in
energy storage applications will
drive demand. Coal is doing well
thanks to steel making and its
controversial use in generating
power.
by Ron Hall
OUTLOOK
2019
commodities
